The U.S. economy ended last year on an encouraging note, with all parts of the country showing improvement. Factories produced more, shoppers spent more and companies hired more. And all those signs point to a stronger economy in 2011.

A member of the Federal Reserve's policymaking committee suggested Tuesday that the Fed may need to scale back its $600 billion Treasury bond-buying program if the economy grows more quickly than expected.

Federal Reserve Chairman Ben Bernanke sketched a more optimistic view of the economy Friday but said the Fed's $600 billion bond-buying program is needed because unemployment will likely stay elevated for up to five more years.